Has rent got you down lately? Is the housing market looking good with the low interest rates for those of you with really good credit, " I'm talking 720 or better" and does the Federal government 8,000.00 dollar Tax Credit look like it could help with, "shall we say" whatevers, that come down the road? Keep in mind that the Tax Credit mentioned is only good for the first year, and then it is gone, and if you do buy, the cost of maintaining that home so you can build equity is about 1% of the homes purchase price per year! If you rent, you are not obligated to maintain the home or apartment except for normal stuff like changing a light bulb, or keeping the place clean. You would not have to pay for a new water heater for instance. You actually have a little more freedom!
Think about it, if you owned a home right now and you decided to sell the home. You are stuck living in it until it is sold or "heavens forbid" you rent it out to someone. Right now the sales market is stale to say the least. The reason it is stale is people can't afford the credit or the prices right now. Foreclosures are increasing and it will get even worse before it gets better. Our jobless rate is the highest it has been in 60 years. The statistics speak for themselves! You also run into the problem of losing the equity on your home with this unstable market. At least 20% of the homes owned by Americans right now have lost value in their homes, and until the banks can get rid of the foreclosures they are dealing with, the market will not get any better.
Oh and here is something else to think about! Remember that good ole deduction you get for owning a home. It is called the interest write off, and it is limited by your Tax Bracket. If you are in the highest federal tax bracket, every dollar you pay in mortgage interest saves you only 35 cents in taxes.
most people get even less because they are in the 25% tax bracket or lower, so buying a house just for the tax break is like giving someone a dollar for only 35 cents or less in return. So what do you do? Get the foreclosures out of the way!
Right now banks are willing to throw foreclosures at you for 30% to 40%, and I have seen as much as 60% to 80% off the price. Why? Because they are dead properties, and they can't do anything with them. You can though!
Buy up those foreclosures and perhaps use it as a home, or turn it around and sell it for a 10% to 30% profit on what you bought it for. Use other peoples money, like Hard Money Lenders. Right now their is a wonderful foreclosure training site that has been updated and you have to see it to believe it. If you have the opportunity to buy a home that was a three bedroom, two full bath, on a half acre lot that originally sold for 225,000 and you could get it for 100,000, would you? I will leave the answer to you!
Foreclosureutopia has everything you need and right now it is free for 7 days and a dollar donation to my charity of choice. It is worth it, to check it out if you have ever considered self employment, or your own business to do at home at your leisure, or perhaps seeking to purchase your very first home. By the way, here is something you'll get out of the program that helped me get started. You don't need any credit what so ever to do this, and it is brand new and proven to work. People are making thousands of dollars by doing exactly what it tells you to do. Think about it!
Donald J. Colson
http://www.foreclosureutopia.com
